Questions from Federal Taxation

Q: Explain what a qualified residence is for purposes of qualified residence interest

Explain what a qualified residence is for purposes of qualified residence interest.

Q: Paul Price is the president and majority stockholder of Lightmore Communications,

Paul Price is the president and majority stockholder of Lightmore Communications, Inc. Lightmore is a C corporation and has been extremely successful over the past 20 years. Paul travels extensively i...

Q: Why is interest expense disallowed if it is incurred to purchase or

Why is interest expense disallowed if it is incurred to purchase or hold tax-exempt obligations?

Q: When is interest generally deductible for cash method taxpayers? Explain if

When is interest generally deductible for cash method taxpayers? Explain if the general rule applies to prepaid interest, interest paid with loan proceeds, discounted notes, and personal interest. If...

Q: a. For purposes of the charitable contribution deduction, what is

a. For purposes of the charitable contribution deduction, what is capital gain property? Ordinary income property? b. What is the significance of classifying property as either capital gain property...

Q: How is the amount of a charitable contribution of capital gain property

How is the amount of a charitable contribution of capital gain property determined if it is donated to a private nonoperating foundation? How does this determination differ if capital gain property is...

Q: On December 17 of the current year, Kelly’s business office safe

On December 17 of the current year, Kelly’s business office safe is burglarized. The theft is discovered a few days after the burglary. $3,000 cash from the cash registers is stolen. A diamond necklac...

Q: : May an individual who is married and files a joint return

May an individual who is married and files a joint return deduct any charitable contributions if the itemized deductions total $7,000 (of which $3,000 are qualified charitable contributions)?

Q: For individuals, what is the overall deduction limitation on charitable contributions

For individuals, what is the overall deduction limitation on charitable contributions? What is the limitation for corporations?

Q: If a taxpayer’s charitable contributions for any tax year exceed the deduction

If a taxpayer’s charitable contributions for any tax year exceed the deduction limitations, may the excess contributions be deducted in another year? If so, in which years may they be deducted?